ABSTRACT

This chapter investigates the channels through which colonial origin affects economic growth performance, focusing only on sub-Saharan African (SSA) countries. Besides limiting the sample of study to a set of countries which do not appear to display significant differences in the initial geographical conditions. The Hausman Taylor (HT) estimation technique is applied to annualized panel data. It also investigates two probable transmission channels between colonial origin and growth, namely, education and trade. The results suggest that the indirect influences of colonial educational policies matter more for post-colonial growth than the direct influences emanating from colonization. Historical sources claim that, as of the late nineteenth century, Britain was the only imperial power that was committed to free trade, whilst the other European powers, notably France, were still building up their rival industries through protectionism. Correspondingly, whilst British colonial economies were not under the obligation to export only to Britain, French colonial economies were compelled to trade mainly with France.